In the past decade, economists, legal experts, and policy makers have been discussing the effects of neutral network structures
on - among others - innovations by content and application providers. Does network neutrality - the open and non-discriminatory
functioning of the internet - provide incentives to innovate? The Ministry of Economic Affairs asked SEO Economic Research
to describe the essential economic mechanisms behind the innovation-enhancing working of network neutrality.

In this
study, SEO concludes that network neutrality enhances innovations by small content and application providers (CAPs), but it
also provides benefits for large CAPs and internet service providers (ISPs). Network neutrality enhances innovations through
three channels: (i) it reduces the market power of ISPs, (ii) it increases connectivity between end-users and CAPs, and (iii)
it helps avoid some costs of traffic shaping for the benefit of large CAPs and ISPs. The results presented in this study are
based on desk research, primarily on findings in the blooming economic literature on network neutrality.

Disclaimer/Complaints regulations

If you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let
the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible
and/or remove it from the website. Please Ask the Library, or send a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands.
You will be contacted as soon as possible.